A VC : Venture Capital and Technology

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Global Venture Capital Distribution

A VC : Venture Capital and Technology

Richard Florida published some stats on the distribution of global venture capital investment last week. Outside of the U.S.,

Venture Capital Returns

A VC : Venture Capital and Technology

This post is for everyone who thinks venture capital is an easy business. I'd like to dispel that notion. You lose more than you win.

Selling

A VC : Venture Capital and Technology

In venture capital, thankfully, VCs don’t drive a lot of the sell decisions. Most sell decisions that really matter in a venture portfolio will be made by the founders and management of the portfolio company, including the timing of the public offering if that is where a company is headed. Selling tends to be emotional.

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The Hard Raise

A VC : Venture Capital and Technology

In the summer of 2003, Brad Burnham and I set out to raise a $100mm early stage venture capital fund. We spent our own capital raising that fund. But that fund, USV 2004, has been one of the very best venture capital funds ever put together. The term “web 2.0” And then a few others did. But we did.

Experiment and Scandal

A VC : Venture Capital and Technology

Some of this has happened because of the explosion of venture capital, both in the US and also around the world. We are living in a time of great experiments. They are not happening in the lab. They are happening in the real world. And they are being financed by real people. But by their nature experiments often fail. We talk it up.

The Startup Curve

A VC : Venture Capital and Technology

Venture Capital and TechnologyBut more services exhibit this "startup curve" than any other growth pattern. But many do.

Mocked And Misunderstood

A VC : Venture Capital and Technology

Venture Capital and Technology Web/TechFor some reason, that correlates highly with the biggest breakout successes.

Entrepreneurs Have Control When Things Work, VCs Have Control When They Don't

A VC : Venture Capital and Technology

Venture Capital and TechnologyGrove Potter , the Business Editor for the Buffalo News, interviewed me for something like an hour.

In Defense Of Free

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/TechI have written so much about free here at AVC that it should be called AVFree.

What Do You Look For?

A VC : Venture Capital and Technology

Venture Capital and TechnologyI'm asked this question all the time. Is it team? Is it the idea? Is it product? Is it market?

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You Can Do Too Much Due Diligence

A VC : Venture Capital and Technology

It's Monday, time for another lesson I've learned in the venture capital business. MBA Mondays Venture Capital and Technology Today I will tell a story that I love telling. It has some of my favorite people in it. It provided a number of useful services for a blog's RSS feed. What we heard was surprising.

Fund Level Vs Deal By Deal Carry

A VC : Venture Capital and Technology

In a venture fund, the general partners will make something like twenty or twenty five investments. There are outliers for sure. A few venture funds will make less investments than that. The thing I want to talk about is how losses (and gains) are treated in a venture fund. That’s $50mm of invested capital.

The Billion Dollar Valuation Club

A VC : Venture Capital and Technology

  Venture Capital and Technology Aileen Lee has a really good post up on TechCrunch , in which she analyzes the number of companies that have been started since 2003 that have gone on to be worth $1bn or more. Unless, of course, you raise money from VCs. In which case, you are getting into the game and will be impacted by it.

You Are Not Your Work

A VC : Venture Capital and Technology

entrepreneurship Venture Capital and Technology My friend Gary said this to me the other day in an email. He wasn't talking about me but he could have beeen. Last night I went to bed thinking about my work, dreamt about my work, and woke up thinking about my work. To some extent it's been that way for me since college.

What Has Changed

A VC : Venture Capital and Technology

there is a large pool of money in the venture capital asset class that is opportunistic, momentum driven, and thesis agnostic. this pool of capital was "all in" on consumer web/social web in the 2009-2011 time frame. That is a tiny fraction of the venture capital market. What does that mean for USV?

Loss Ratios In Early Stage VC

A VC : Venture Capital and Technology

Or you can calculate loss ratios by "dollars" meaning how much of the capital invested in the fund went into total losses. That fund will be the best venture fund I have ever worked on. Venture Capital and Technology And made a fair bit too. Our first fund, USV 2004, has an "names" loss ratio of about 40%.

How Much Money To Raise

A VC : Venture Capital and Technology

Venture Capital and TechnologyImage via Wikipedia. That's not a good thing. If you can keep it to 10%, that is great.

A Different Approach To VC

A VC : Venture Capital and Technology

So we can’t talk about venture capital without talking about Unicorns, right? percent of companies are using a product, venture capital, that really doesn’t work for them. I wrote this to my partner the other day. I’m not going to provide the context. It doesn’t matter. It’s a good read.

Video Of The Week: The Tech Tonic Discussion

A VC : Venture Capital and Technology

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What VC Can Learn From Private Equity

A VC : Venture Capital and Technology

Finally, the first venture capital firm I helped start, Flatiron Partners, was backed by and initially housed inside a private equity firm, Chase Capital Partners, and Jerry and I learned a lot from attending their weekly investment meetings and listening to them talk about their business. It’s powerful.

The Power Of Diversification

A VC : Venture Capital and Technology

Venture Capital and TechnologyI have written about this topic before but it's important and I want to say it again.

Mary Meeker's 2012 Internet Trends

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mobile Venture Capital and Technology Web/TechMary published this presentation this past week.

Rethinking Mobile First

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mobile Venture Capital and Technology Web/TechI wrote the Mobile First Web Second blog post a few years ago. In that post, I talked about apps that were designed to be used on mobile primarily with the web as a companion. There have been a number of startups that have taken that approach and done well with it. Typing is easier.

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Starting and Finishing

A VC : Venture Capital and Technology

entrepreneurship management Venture Capital and Technology AVC regular Donna White posted this to her Tumblr yesterday: I'm a crotchety old guy. worry about all these new companies. I’m glad that they’re easier to start, but the problem is, they’re just as hard to finish as they have always been. And many don't.

Video Of The Week: Paul Graham in 2005

A VC : Venture Capital and Technology

entrepreneurship Venture Capital and Technology

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Mobile Is Where The Growth Is

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/TechIf you look at any of the top web properties on comScore, Quantcast, Alexa or any other third party reporting service you will see that they all have been fairly flat over the first half of the year. You might think that all these big web services are flatlining. Web is flattish. Yahoo!

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The European Startup Market

A VC : Venture Capital and Technology

Second, we have developed a number of strong relationships with European venture capital firms. This post by a leading venture fund investor in the US talking about the new European VC funds is right on the mark. At USV, we’ve been investing in European startups since 2008. So what’s happening here?

When Things Don't Work Out

A VC : Venture Capital and Technology

Venture Capital and TechnologyI have said many times that early stage VC is a lot like baseball, if you get a hit one out of every three times, you are headed to the hall of fame. And if I look back over my career, and also over the track records of the firms and funds I have helped manage, that is pretty much the hit rate I have seen.

Investing In Startups In Europe

A VC : Venture Capital and Technology

Venture Capital and Technology One of the big european tech conferences starts today. It's called DLD and my partner Albert is giving a talk there tomorrow. The last big european tech conference was LeWeb and I gave a talk there. You might wonder why we fly across the pond to attend and talk at these events.

Who You Want On Your Board

A VC : Venture Capital and Technology

One of the guys who taught me the venture capital business used to say "success is in inverse proportion to the number of VCs you have on your board." He was right. entrepreneurship Venture Capital and TechnologyFor a few reasons. First of all, most VCs get on your board by virtue of financing rounds you do.

How Well Do You Take A Punch?

A VC : Venture Capital and Technology

Venture Capital and TechnologyI was talking to a friend who has been displaced because of Sandy. They are struggling to get back to their daily routine and it is hard living out of a suitcase without access to the things they rely on from day to day. I was talking to the CEO of a company whose business was negatively impacted by Sandy.

What Are App Coins?

A VC : Venture Capital and Technology

The idea that we now have a monetization model for creating and maintaining a public good (ie Twitter) is something that makes me incredibly happy and poses all sorts of interesting questions about the future of venture capital Last week Coin Center published a primer on app coins. It is very good.

#startupstories

A VC : Venture Capital and Technology

Venture Capital and TechnologyThey are all great but I particularly like this one on Failure.

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The art of important work, of making a ruckus and of inventing the future

A VC : Venture Capital and Technology

Venture Capital and TechnologyEntrepreneurs teach VCs , not the other way around. And I was lucky early in my career to back Seth Godin , who taught me a lot. When I met Seth, he was writing books and building a web company. backed that web company, Yoyodyne, which exited to Yahoo! a few years later. He did that in the 90s.

Some Perspective

A VC : Venture Capital and Technology

stocks Venture Capital and TechnologyI don't disagree with PG when he says that Facebook's IPO performance (or lack thereof) has the potential to impact valuations in startup land. think it will be particularly impactful on the late stage and secondary markets where most of the IPO valuation speculation is happening.

The Twitter "Patent Hack"

A VC : Venture Capital and Technology

Many years ago now, my prior venture capital firm, Flatiron Partners, invested in a company called Thinking Media. Venture Capital and Technology Web/TechYesterday Twitter announced that they plan to amend the assignments agreements that they sign with their employees. You can read the entire set of provisions on GitHub.

Return and Ridicule

A VC : Venture Capital and Technology

So many folks in the venture capital business are sheep that just want to follow the herd. Venture Capital and Technology I am going down to Princeton today to talk to Ed Zschau's class on entrepreneurship today. Ed asked me what I wanted to talk about. His logic was that you can't make money by being wrong.

Where's My Billion Dollar Check, I Wonder

A VC : Venture Capital and Technology

Venture Capital and TechnologyWhen a blockbuster deal happens, a lot of people get excited. The press is all over it, money comes pouring into startups in search of the next one, people quit jobs and school to get in the game. It's a gold rush. It sums up the emotion so well for me. Startups are hard. It's a punch to the gut.

The Pro-Rata Opportunity

A VC : Venture Capital and Technology

like this slide from his post: “Capturing pro-rata” is sooooo important in early stage venture. You make 20 investments in a fund.

Profitless Prosperity

A VC : Venture Capital and Technology

  MBA Mondays Venture Capital and Technology If a Company is making huge profits this year but will not make any profits in the future, it is worthless in the eyes of an investor. But if it loses money this year and next year and may lose money for a few more years, it can still be very valuable in the eyes of an investor.

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